Tokyo Stock Exchange Executes Millisecond Trading with New System Based on Red Hat Enterprise Linux

Established in 1949, TSE is a leading exchange in the Asian market. TSE boasts the second largest listed market capitalization and the fourth largest annual stock trading value in the world (USD-based, 2009).

In order to keep up with expanding trading activities and changing forms of trading methods, TSE built a new, next-generation trading system called “arrowhead.” The system was designed to combine low latency with high reliability to accommodate diverse products, trading rules and changes within a short time window. Launched on January 4, 2010, “arrowhead” handles the auction trading of all of TSE’s cash products, including stocks and convertible bonds. As TSE had already used Red Hat Enterprise Linux as the operating platform of its derivatives trading system, TSE turned to it again as a base for building a trading system that offered higher reliability and improved performance.

With its Red Hat Enterprise Linux base, “arrowhead” today provides TSE with more advanced reliability, greater scalability, lower latency and improved flexibility and robustness. The new system aims to deliver a capacity of orders accepted per second ten times larger than that of TSE’s previous trading platform. TSE has measured an impressive order response time of two milliseconds and an information distribution time of three milliseconds. In addition, the solution offers the flexibility to accommodate new trading rules, the ability to be scaled with jumps in system demand and trading growth and expanded security and reliability.

“With our new ‘arrowhead’ trading platform and its millisecond distribution speeds, we have achieved a new level of technology innovation for Tokyo Stock Exchange,” said Yoshinori Suzuki, managing director and CIO at TSE. “The high performance, scalability and reliability offered by Red Hat Enterprise Linux, combined with Fujitsu’s solid system construction and the services on its server platforms, have provided the technology advances necessary to meet our mission-critical system demands.”

“Fujitsu is proud to deliver TSE’s new-generation trading system ‘arrowhead’ accompanied by our strong relationships with Red Hat and Intel. Leveraging our expertise for whole services, Fujitsu has successfully combined Red Hat Enterprise Linux with the mission-critical server PRIMEQUEST and the industry-standard server PRIMERGY,” said Yoichi Hori, president, Platform Software Business Unit at Fujitsu. “We have accumulated such expertise through our mainframe businesses over the years and this is further proof of our ability and capability, applying to various requests of customer systems.”

“Intel is delivering truly compelling technology advances to enterprise computing customers around the world,” said Pauline Nist, general manager of Mission-Critical Platforms at Intel Corporation. “The Intel-based server is the platform of choice for mission-critical workloads such as TSE’s ‘arrowhead’ trading system, especially when combined with Red Hat Enterprise Linux and Fujitsu’s server technologies.”

About Red Hat

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

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